Slope of Hope Blog Posts

Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.

Psychology of Trading, Part 7

By -

Dealing with Loss

In the summer of 2006, I left my job at Dell Computers.  I was planning to take a year off, which I did, before moving forward.  I spent my year off diving into my passion of investing.  At one point I became particularly consumed with the idea of peak oil (13 years later an idea debunked by the combination of US shale oil and QE).  At the time though, I needed to buy a new car.  I had been driving a truck for a number of years, which I loved.  However, with my study of the energy market, I decided to buy something I never would have before.  I bought a Prius.

(more…)

Psychology of Trading, Part 6

By -

Compulsion to Repeat

Sigmund Freud was the first to recognize that some people behave not out of a desire to seek pleasure, but out of a “compulsion to repeat.”  This theory details how some people endlessly repeat patterns of behavior that are associated with difficult or traumatic events in their lives, particularly early life.  In this article we will take a modern day look at Freud’s repetition compulsion.  Denise Shull, in the below paper, details how today’s neuroscience intersect with Freud’s “compulsion to repeat”.  Let’s take a look.

(more…)

Psychology of Trading, Part 5

By -

Understanding Neurotransmitters

How are emotion and mood developed and affected in the brain?  Science has made much progress in recent decades on the study of the human brain, but much is left to be discovered.  In this article we’ll take a look at a small piece of what we do know, and set the stage for some practical applications that we can use to increase performance.

Excerpts in this article will be taken from the book “Brain and Behavior” by Bob Garrett and Gerald Hough.  This is an excellent textbook used in the study of neuroscience and behavioral psychology.  I highly recommend picking up a copy if you have an interest.

(more…)

Psychology of Trading, Part 3

By -

Click here for part one and here for part two.

Understanding Emotions in Charts

What if you could learn to identify emotions in charts?  What if you could quantify where key emotional decisions were made, and look to profit from that knowledge?  How would you use that information to your advantage?  In this article we are going to examine how emotions are visible in charts, as well as how to understand what emotions look like at extremes.

Your emotions will always seek to move back to a place of equilibrium when stretched.  Were your emotions wounded?  Your emotions will seek a means to heal themselves.  Were you moved to place of extreme excitement?  Your emotions will seek a means to calm themselves.  Were you moved to a place of fear or panic?  Your emotions will seek a means of creating safety.  How you choose to navigate this process can be by either destructive or healthy means.

(more…)